Panel for Air India-Indian Airlines integration soon

New Delhi: The ministry of civil aviation is planning to constitute a new panel with adjudicatory powers to ease out problems arising in the merger of erstwhile Air India and Indian.
Though the merger process was begun three years back, only about 20-25% of it has been achieved till now. Sources confirmed on Wednesday that a panel, comprising eminent personalities from “outside”, is being constituted to “facilitate integration of the two airlines. This way, the Air India management would not have to deal with integration issues directly and some credible outsiders can help this process”.
Though no names have been discussed as yet, the panel is expected to comprise two or three widely respected personalities.
Pointing towards the complete lack of cultural integration between employees of the two carriers, sources said that such a panel would provide “neutrality” to the entire process of integrating the two airlines and provide an objective framework within which to complete the merger.
This panel is being formed just after a persistent buzz — which has been categorically denied by the ministry — of the possibility of undoing the merger to pare losses and improve the overall financial health of the national carrier.
“Undoing the merger is neither practical nor will it reduce losses. In fact, if any such thing were to be done, losses will only mount,” the sources told DNA Money.
04/02/10 Sindhu Bhattacharya/Daily News & Analysis

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Categories: NACIL Feb 2010